Avinash Azad
What began as a rural development initiative under the Pradhan Mantri Gram Sadak Yojana (PMGSY) has turned into a full-blown scandal in Jammu & Kashmir, with damning allegations of manipulation, overbilling, and collusion between contractors and officials in the construction of the Siot-Kalakote road project.
The third round of tendering for the project—initially advertised at a cost of Rs 36.24 crore—culminated in M/s B&L Project Construction (JV) securing the contract for Rs 22.80 crore. At first glance, this appeared to be a competitive win in public interest. But what followed has raised red flags at every level of execution.
According to documents reviewed by The Hidden News team, the Chief Engineer PMGSY (JKRRDA), Jammu, issued an allotment order pegging the construction cost not at the quoted Rs 22.80 crore, but at Rs 26.90 crore—accounting for an 18% GST inclusion. Additionally, a maintenance component of Rs 4.34 crore was tacked on, ballooning the total cost to Rs 31.25 crore.
The contract, originally awarded to M/s B&L Project Construction (JV), has allegedly been sub-let to another firm, sources say. These sources further claim that M/s B&L Project Construction submitted a back-dated CDR (performance security), pointing to possible collusion with PMGSY officials and a “fixed-match,” scripted tender process. Moreover, the firm’s lack of pre-qualification was reportedly overlooked by the authorities, who are said to have acted on directives from the administrative department.
One of the most glaring irregularities lies in Clause 22 of the tender document. While the work executed on the ground comprises only 3% bitumen, PMGSY has released payments for 5% bitumen—typically used in constructing runways and express highways. The clause also suggests that a 70mm Dense Bitumen Macadam (DBM) layer was paid for, whereas only 50mm was required, compounding the excess.
Similarly, Clause 25 reveals that while only 25mm Bituminous Concrete (BC) was laid, the contractor was paid for 44mm thickness—further widening the gap between actual work and exaggerated billing. “The road quality doesn’t even meet rural road standards, yet the contractor is being paid as if he’s building the Delhi Airport runway,” remarked a senior official on the condition of anonymity.
First Tender (Aug 2022): Out of four participants, three were disqualified as non-responsive, leaving M/s TBA Infrastructure Pvt Ltd as the only responsive firm—yet the tender was cancelled. In October 2022, during an earlier round of tendering, four firms participated in the bidding process. Three—M/s TBA Infrastructure (P) Ltd, M/s R V Construction, and M/s Green Earth RLS (JV)—were declared responsive. One, M/s Randhir Singh Group of Constructions, was declared non-responsive. Yet, despite valid participation, the tender was abruptly cancelled—a move that now appears suspicious in hindsight.
MLA Sunderbani-Kalakote Constituency, Randhir Singh, in a scathing statement, alleged a “blatant loot of public resources” and demanded a CBI probe into what he described as a deeply entrenched “corrupt nexus” between contractors and PMGSY officials.
“Since the beginning of this project, I have raised questions multiple times, but neither the concerned authorities nor the anti-graft agencies have taken the necessary steps to dismantle the corrupt nexus,” Singh said. “Following my repeated objections regarding the use of substandard material, after being elected as MLA, the PMGSY authorities managed to carry out comparatively better work on a two-kilometre stretch between Mehari and Kalakote town. However, the quality of work on the remaining 20 kilometres is extremely poor.”
Singh further alleged that substandard materials are being used in the construction of retaining walls, boundary walls, and drainage systems, which are likely to collapse even before the road is completed. He warned that the newly blacktopped stretch may not withstand the upcoming rainy season and could be washed away.
“Substandard and poor-quality materials do not create durable assets—they create long-term liabilities,” he remarked and added, “Even a layman can detect the fraud being committed by PMGSY officials in collusion with the contractors.”
Singh’s comments highlight a grim pattern of shoddy workmanship, selective compliance, and rampant misappropriation in critical rural connectivity projects. Despite his warnings, there appears to have been no meaningful intervention from oversight or enforcement bodies.
This scandal is emblematic of broader systemic failures plaguing infrastructure development in Jammu & Kashmir. Time and again, projects billed as lifelines for rural populations have turned into avenues for illicit profiteering—with tender ‘rigging’, overbilling, and subpar execution the norm rather than the exception.
The Siot-Kalakote project—meant to serve many Tehsils and Sub Divisions—now stands as a case study in how development funds can be diverted, diluted, and ultimately wasted, leaving residents underserved and disillusioned.
A response from the PMGSY department regarding these corruption allegations and financial discrepancies is still awaited. The Hidden News will update this report as and when the department issues a clarification or statement.
